Income Taxes

3 Months Ended

Mar. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

(6) Income Taxes

The components of our income tax benefit (expense) are as follows (in millions):

	Three Months Ended March 31,
	2021		2020
Current income tax expense	$	(0.1)	$	(0.3)
Deferred income tax benefit (expense)	(1.3)		34.0
Income tax benefit (expense)	$	(1.4)	$	33.7

The following schedule reconciles total income tax benefit (expense) and the amount calculated by applying the statutory U.S. federal tax rate to income (loss) before income taxes (in millions):

	Three Months Ended March 31,
	2021		2020
Expected income tax benefit based on federal statutory rate	$	2.4	$	67.3
State income tax benefit, net of federal benefit	0.2		8.0
Unit-based compensation (1)	(2.5)		2.4
Non-deductible expense related to goodwill impairment	—		(43.4)
Change in valuation allowance	(1.2)		—
Other	(0.3)		(0.6)
Income tax benefit (expense)	$	(1.4)	$	33.7

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(1)Related to book-to-tax differences recorded upon the vesting of restricted incentive units.

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax liabilities, net of deferred tax assets, are included in “Deferred tax liability, net” in the consolidated balance sheets. As of March 31, 2021, we had $111.0 million of deferred tax liabilities, net of $404.5 million of deferred tax assets, which included a $154.5 million valuation allowance. As of December 31, 2020, we had $108.6 million of deferred tax liabilities, net of $396.0 million of deferred tax assets, which included a $153.3 million valuation allowance.